Welcome to the WHAT THE TRUCK?!? Newsletter presented by Unisys. In this issue, port strike has shipping managers on edge; cost parity with diesel; bridge strike; and more.
Strike deadline nears
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Negotiations strike out — The last International Longshoremen’s Association strike happened 47 years ago, but that may all change Sept. 30 when the union’s 6-year agreement with ports from Maine to Texas that covers 45,000 workers expires.
Wages and technology have been keeping the two sides apart. FreightWaves’ Stuart Chirls listed their demands in this article.
- – A wage increase higher than the reported 32% recently won by the International Longshore and Warehouse Union.
- – Retention of existing technology language from the 2018 contract.
- – A higher starting wage.
- – What employers call “premier” health care benefits.
- – Higher employer retirement contributions.
ILA President Harold Daggett released a video on YouTube last week where he assured the United States Maritime Alliance that the union will strike if its demands aren’t met.
He specifically calls out the work dockworkers did during COVID and the billions made by steamship lines. He goes on to say that they will not accept any automated or semi-automated terminals. Daggett was a part of the last strike 47 years ago.
The spice must flow – Fears of the strike have enveloped the shipping community and have caused freight to shift back to the West Coast. In fact, the ports of Long Beach and Los Angeles have both been experiencing record cargo volumes this summer, surpassing pandemic-level numbers.
Just how bad would a stoppage be for East Coast freight? FreightWaves’ Michael Baudendistel reports, “For every one day of disruption from a potential strike, it would take five days to clear.”
“In the third quarter, loaded international and domestic intermodal volume outbound from LA is up 43% and 14%, year over year, respectively” – FreightWaves’ Michael Baudendistel
It isn’t just boxes into the port either. All this added freight volume on the West Coast is pouring in to rail and drayage volumes as well.
In addition, long-haul truckload moves over 800 miles outbound for Los Angeles are spiking out.
SONAR
A perfect storm – With shippers already pulling freight forward to avoid a potential strike (as well as issues in the Red Sea), things could start to become congested quickly in the Golden State. If Trump wins the election, expect import volumes to climb even more rapidly as shippers try to avoid his administration’s proposed tariffs.
Expect all rates, from ocean to rail to truckload, to shoot up rapidly in the event of a strike and even more so if there’s a strike and Trump wins the election.
Sound off – Do you think the ports will strike, and if so how are you preparing for the disruptions? Email me.
Cost parity with diesel is a must for semitruck electrification to get in gear
Dollars and sense — About a month ago, I went out to Long Beach to shoot a documentary with a drayage carrier that is already deep in the process of adding zero-emissions vehicles to its fleet.
What really stood out to me were the issues the operators face. For example, the battery electric trucks that they have can’t go more than 200 miles on a single charge. This cuts into their utilization and costs the fleet money as they can’t run as many loads per truck.
The issues don’t end with charging, though. The battery electric semi is also 11,000 pounds heavier than a diesel semi. There is a 2,000-pound weight exemption for electric trucks, but that still means that each BEV truck hauls 9,000 pounds less freight than a diesel.
They also cost over three times as much, and as they’re new, there aren’t any used options. However, shippers do not want to pay more for a zero-emissions mile than a diesel one. This means that the drayage carriers have to absorb all of these costs, severely limiting the overall viability of zero-emissions trucks.
A new McKinsey study has found that EV trucks need to drop in price by 50% to compete with diesel. I think they’re underestimating. The report doesn’t go deep in the utilization issues both charging and weight represent.
Check out or documentary “WHAT THE TRUCK?!? Is Happening in Long Beach,” out soon. Here’s the trailer.
Knowing your height: Not just for truckers
In the drink – Today, in where’s my freight: A cargo barge in the Netherlands hit a bridge, causing five containers to fall into the Maas River. Splash reports, “According to harbour operator Havenbedrijf Rotterdam three containers had been retrieved with the other two sinking.”
What’s wild about all this is that the barge didn’t even bother to stop after the collusion. Authorities are currently investigating the incident and are talking with the ship captain.
The World Shipping Council reports that between 2008-2022, an average of 1,566 containers were lost per year.
Forget ‘Founder Mode’
FBM – Founder mode has nothing on Freight Broker Mode. Wear the shirt that lets them know you grind. Head on over to WTTGear.com to get our latest merch! Use code WTTFans for 10% off.
WTT Friday
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Now on demand
Over 160,000 CDL holders impacted by new law; NASCAR’s William Byron
Truckers honored with NASCAR experience at Relay Payments Haul of Fame
The rest of the noise
- Affair brings down Norfolk Southern CEO Alan Shaw
- Ports assess damage after Francine lashes Louisiana
- Could East Coast port strike spread to West Coast?
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Don’t be a stranger,
Dooner